Brief explanations of commonly used terms in Inscribe's Credit Analysis

Refers to a period of 1 year.

A balance is the amount of money remaining in an account or financial instrument after all debits (withdrawals) and credits (deposits) have been accounted for. The closing balance refers to this value at the end of the bank statement period, while opening balance refers to this value at the beginning of the bank statement period (i.e. the previous period's closing balance).

Bank Account
A bank account is a financial account provided by a bank or financial institution that allows individuals, businesses, or organizations to deposit and withdraw money, store funds, and perform various financial transactions.

A category refers to the bank transaction type e.g. LOAN, SALARY, NSF, REVENUE, and many others. The category is "why" a transaction occurred. See here for more information.

A Customer is an Inscribe entity representing persons or businesses through documents and open banking data.

Income Streams
Income streams describe the various avenues in which an entity (person or business) receives income. Consider a case where an individual receives a salary for full-time employment, but also earns sporadic income from a side business. These two income sources are referred to as “streams”.

Loan Disbursement
A loan disbursement is the distribution of funds from the lending institution to the borrower. A disbursement is a credit (deposit) for the borrower.

Loan Repayment
A loan repayment refers to the repayment of borrowed funds to the lender, including both the principal amount borrowed and any applicable interest or fees. A repayment is a debit (withdrawal) for the borrower.

A merchant is a person, company, or entity that sells goods or services. We identify merchant from Transactions, aiming to understand where a Customer spends and earns their money.

A transaction method describes how a transaction is processed, e.g. BANK_TRANSFER, CASH, or CHECK. The method is "how" a transaction occurred.

Net vs. Gross
Gross income refers to the total income earned by an individual or company before deducting any expenses or taxes. In contrast, net income, or net profit or earnings, is the remaining income after subtracting all costs, taxes, and other deductions from gross income.

NSF is a transaction category that stands for "non-sufficient funds". When a transaction is attempted on a bank account with insufficient funds, the bank may return the payment unpaid and charge a fee to the account holder. This returned payment will be assigned the NSF category.

Open Banking
Open Banking is a system that uses APIs to share financial information and services with third parties. In Inscribe's context, we use Open Banking to get transaction information from third-party providers and the bank statement documents we already receive.

An overdraft transaction occurs when a bank account holder withdraws or spends more money than what is available in their account. In other words, it refers to a negative balance in the bank account due to the account holder exceeding their general funds.

A period is a specific duration or time interval, and it could represent a segment of time, such as an hour, day, week, month, quarter, or year. For example, a bank statement may be prepared for a specific accounting period, such as the fiscal year or a quarterly period.

Personal Income
Personal income is the total amount of money a person earns from various sources over a specific period. It includes salary, investments, retirement and social security benefits, and other sources.

Revenue refers to the total income that a business or organization generates from its activities, typically through the sale of goods, provision of services, or other business operations.

It is a transaction category that refers to the movement of funds from bank account A to another bank account B where both A and B belong to the same customer.

A withdrawal is a transaction category that refers to taking money or funds out of a bank account. It involves reducing the balance or value of the account by removing funds.